More taxpayers’ money for the banks

Press conference by Štefan Füle, Member of the European Commission, on the adoption of the 2013 Enlargement package and its communication and follow-up reports. However the Icelandic government decided to put accession negotiations in the ice, because relations with the EU turned sour, due to banks and a fish called mackerel.

Press conference by Štefan Füle, Member of the European Commission, on the adoption of the 2013 Enlargement package and its communication and follow-up reports. However the Icelandic government decided to put accession negotiations in the ice, because relations with the EU turned sour, due to banks and a fish called mackerel.

Within 24 hours, after the European Sting published on Thursday an article entitled, “Fair completion rules and the law of gravity don’t apply to banks”, and the responsible EU Commissioner Joaquín Almunia, Vice-President of the EC blessed as legitimate the rescue of the Dutch bank and insurance company SNS REAAL by the country’s exchequer with more than €4 billion. He said that the bailout is “in line with EU state aid rules”. If it was a subsidy to the Dutch SMEs engaged in the repair of bicycles, the Commission would have intervened asking the technicians to return the money to the state plus interest.

It is as if handing out taxpayers’ money to financial companies, is the most natural thing of the world and the real sector companies small and big, have nothing against it, despite the fact that the banks do not lend them the money they receive for free. In the rare case that a bank accorded a new loan to an SME or a consumer during the past four years, the interest rate was always in the double-digit region.

The untouchables

Unfortunately it’s not only the Commission that treats the financial sector companies as if they don’t belong to this world. Invariably all the western world governments, at the brilliant exception of Iceland, keep spending their taxpayers’ money in injecting billions into banks. Thank God, Reykjavik proved to the world that our modern societies can survive even if all banks go bust and other, new financial firms, are born as it was usual until now in the economic system that once was capitalism. Nowadays 130 banks in the Eurozone have been elevated to the heavenly category of ‘systemic’ making them untouchable or probably cherubs?

Coming back down to earth, the relevant Press release issued by the Commission yesterday goes like this, “Because of persistent problems following the write down of its property finance portfolio, the Dutch State decided in February 2013 to nationalise the group SNS REAAL and to inject new capital. In this context, the Dutch State notified the following state measures to the Commission:
*a €1.9 billion recapitalisation of SNS Bank in the form of ordinary shares;
*a €300 million recapitalisation of SNS REAAL in the form of ordinary shares; and
*a bridge loan of €1.1 billion to SNS REAAL to secure its short-term funding needs.”
Also as part of the restructuring plan, the Dutch exchequer will spin-off the property finance activities of this bank and insurance firm into a bad bank at a transfer price above the market value, amounting to an additional aid of € 859 million. In total the poor and the rich Dutch taxpayers alike will pay €4,159 million to revitalise this financial zombie.

Politically correct

Commissioner Almunia in order to be legally and politically correct noted that “The Commission found that the State aid granted to SNS REAAL is necessary to preserve the stability of the Dutch financial system”. Obviously, Sigmundur Davíð Gunnlaugsson, the Prime Minister of Iceland would object this. Last time he was in Brussels he delivered a lesson or two to the Brussels’ dignitaries, about how his country treated all those fraudulent bankers, who pocket the profits from their risky bets and when those ‘investments’ go sour they ask the state to pay the bill.

One after the other, the major shareholders and the top management of the three Icelandic banks Kaupthing, Landsbanki and Glitnir Bank which went bust, are convicted to long imprisonment sentences. Their crime is not that they went bust, but what they did before that. In any case the paradigm of Iceland remains as a reminder to everybody that banks and bankers should be left to go bankrupt as any other business. Just take care that they didn’t have the opportunity to cheat people about security and yields of ‘investments’.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

UN global counter-terrorism strategy review an ‘overarching vision for the future’: Assembly President

MEPs want robust EU cyber defence and closer ties with NATO

This is how Copenhagen plans to go carbon-neutral by 2025

ITU Telecom World 2017: exploring smart digital transformation

Can the EU afford to block China’s business openings to Europe by denying her the ‘market economy status’?

How climate change exacerbates the refugee crisis – and what can be done about it

The EU tells the bare truth to the UK that there is no such thing as easy divorces

Use space technology to build a better world for all, urges UN chief

It’s time to end our ‘separate but unequal’ approach to mental health

Security Union: political agreement on strengthened Schengen Information System

Higher education becoming again a privilege of the wealthy?

Fragile countries risk being ‘stuck in a cycle of conflict and climate disaster,’ Security Council told

EU Parliament: ECB accountable for not supporting real economy

European Youth Event 2016 – bridge between youth and policy makers

Russia’s permafrost is melting and it could have a devastating global effect

Judges urge Security Council to serve interests of all UN Member States

Venezuelans brave torrential border river, face exploitation, abuse – UN urges greater protection

UN chief condemns suspected Boko Haram attacks targeting Eid al-Fitr celebrations in Nigeria

Four ways Europe can become a global innovation leader

Can Obama attract Iran close to the US sphere of influence?

End fossil fuel subsidies, and stop using taxpayers’ money to destroy the world: Guterres

Bank resolutions set to remain a national affair

5 steps that could end the plastic pollution crisis – and save our ocean

Siege of Syria’s eastern Ghouta ‘barbaric and medieval’, says UN Commission of Inquiry

Leveraging digital for high quality internships

Health: The neglected aspect of climate change

Juncker Plan reaches almost €410 billion in triggered investment across the EU

2019: An unpredictable, confrontational and financially ominous year

Is your smart home as safe as you think?

Everybody for himself in G20 and IMF

Germany: A grand coalition may trouble employers and bankers

As Syria conflict enters ninth year, humanitarian crisis ‘far from over’, Security Council hears

OECD employment rate increases to 68.2% in the first quarter of 2018

Survivors of ISIL terror in Iraq want justice, not revenge, says head of UN investigation team

Climate change: ‘A moral, ethical and economic imperative’ to slow global warming say UN leaders, calling for more action

Parliament makes EU electricity market cleaner and more consumer-friendly

Merkel refuses to consider the North-South schism of Eurozone

Guinea-Bissau spotlights threats of organized crime, Sahel terrorism in speech to UN Assembly

Cheese energy could power hundreds of UK homes

This Japanese company pays its employees to get a good night’s sleep

Peru should help more young vulnerable people into work

Responsible Artificial Intelligence

European Business Summit 2014: Sting Report, Day I

EU Directive makes haircut on uncovered deposits a standard in bank bail-ins

The Irish Presidency bullies the Parliament over EU budget

Crime and drugs in West and Central Africa: Security Council highlights ‘new alarming trends’

A new generation of women leaders is making waves in the Arab world

Scientists have created a new kind of plastic that could be infinitely recyclable

UN urges ‘restraint’ in Bangladesh’s post-presidential election violence

European Commission calls on national political parties to join efforts to ensure free and fair elections in Europe

WEF Davos 2016 LIVE: “It is the implementation, Stupid!”, German Finance Minister Wolfgang Schaueble points the finger to Greece from Davos

AIDEX 2015: Humanitarian Hero Award Winner Announced

Afghanistan extends ceasefire with Taliban; UN urges both sides to work towards lasting peace

MWC 2016 LIVE: Freemium MVNO model a success, claims FreedomPop head

Ambassador Zhang Ming: “Work Together for a Better Globalization”

UN General Assembly urges greater protection for Palestinians, deplores Israel’s ‘excessive’ use of force

Political solutions ‘prerequisite to sustainable peace’, Lacroix tells Security Council

More refugees being helped by family, work and study permits, finds OECD and UNHCR study

‘We will not give up on looking for peace for South Sudan’: UN deputy chief

Preparing medical students for new challenges in medical ethics

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s